MIRA INFORM REPORT

Report Date :

20.01.2012

IDENTIFICATION DETAILS

Name :	TAIWAN WAX COMPANY LTD.
Registered Office :	1, Chung Cheng Road, Minhsiung Industrial Park, Chiayi Hsien
Country :	Taiwan
Financials (as on) :	30.09.2011
Date of Incorporation :	13.08.1987
Com. Reg. No.:	22625269
Legal Form :	Joint Stock Company
Line of Business :	Manufacture and sales of wax products, etc
No. of Employees :	67

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 300,000
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Taiwan	a2	a2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Contact Points

Company Name:	Taiwan Wax Company Ltd.
Supplied Name:	Taiwan Wax Co Ltd
Trading Address:	1, Chung Cheng Road, Minhsiung Industrial Park, Chiayi Hsien, Taiwan, R.O.C.
Supplied Address:	No 1 Chung Cheng Road Minhsiung Inds Park Chiayi Taiwan
Telephone Number:	+886-5-221-9180
Fax Number:	+886-5-221-9182

Notes: Subject’s exact name and address are as above.

Credit Summary

Credit Rating:	Maximum credit USD 300,000
Credit Opinion:	Business connections are permissible.

Company Identification Details

Registered Name:	Taiwan Wax Company Ltd.
Registered Address:	1, Chung Cheng Road, minhsiung industrial park, chiayi hsien, taiwan, R.O.C.
Date of Foundation:	1987-8-13
Registration Number:	22625269
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 2,000,000,000 (USD 66,800,000) (As of 2012.01, 1 NTD = 0.0334 USD)
Paid-up Capital:	NTD 646,905,240 (USD 21,606,635)
Legal Representatives:	Zhisheng Jiao
Legal Form:	Joint Stock Company
Principal Activities:	Manufacture and sales of wax products, etc
Staff:	67 employees (as of 2010.04)
Listed at Stock Exchange:	OTC listed with the Stock Symbol: 1742
Date of Last Annual Return:	2011-8-18

History

1987-8-13	Subject was incorporated with the registered number 22625269 as Joint Stock Company in Taiwan.
2004.05	OTC listed with the Stock Symbol: 1742

Awards

Year	Awards
2008	Blue chip importer and exporter
2009	Blue chip importer and exporter
2010	Blue chip importer and exporter

Standard of Blue chip importer and exporter

Unit: USD

Year	Amount
2008	19,000,000
2009	15,000,000
2010	20,000,000

Shareholders

Name	Subscription Shares
Yue Sheng Industrial Co., Ltd	765,916
Yongxiang Zhang
13,440
Taiwan Styrene Monomer Corp.	28,787,200
Yung Fu Co., Ltd	128,000
Yiling Wang	79,479
Yujie Investment Co., Ltd (Literal Translation)	518,400

The information above is that of subject’s major shareholders.

Subsidiaries & Branches

Trading address (factory)

Address:	1, Chung Cheng Road, Minhsiung Industrial Park, Chiayi Hsien, Taiwan, R.O.C.
Telephone Number:	+886-5-221-9180
Fax Number:	+886-5-221-9182

Personnel Information

Core Management

Directors

1
Name	Zhisheng Jiao
Position	Board Chairman
2
Name	Yongxiang Zhang
Position	Vice President
3
Name	Zhengyuan Liu
Position	Director
4
Name	Jiaping Su
Position	Director
5
Name	Zhiping Fan
Position	Director
6
Name	Shaoqi Wu
Position	Director
7
Name	Junhui Guo
Position	Independent Director
8
Name	Tongyan Liu
Position	Independent Director
9
Name	Yiling Wang
Position	Independent Director
10
Name	Xiangding Zeng
Position	Supervisor
11
Name	Lirong Huang
Position	Supervisor
12
Name	Mingde Chen
Position	Supervisor

Personnel Structure

Total Employees

67 employees (as of 2010.04)

Operation Information

Offices & Factories

	Headquarters
Add	1, Chung Cheng Road, Minhsiung Industrial Park, Chiayi Hsien, Taiwan, R.O.C.

Production Information

l Subject is a manufacturer of waxes and subject’s annual production information is as follows

Unit: MT, NTD/000

	2010	2009	Rate Of Rise
Total Output	60,561	40,400	49.90%
Total Sales Amount	1,954,164	1,057,885	84.72%

Purchase Information

l The registered activities of subject:

Business Code	Details
C802990	Manufacture of other chemicals
C803990	Manufacture of other oil and Coal Products
F401010	International Trading Business
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

l Subject purchases both at home and abroad.

Sales Information

l The subject is mainly engaged in sales of waxes including soft waxes, hard waxes, Vaseline materials and products, as well as formulated waxes and chemical products used for wax manufacturing.

l Subject’s products are both sold in domestic and overseas market.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Product	Payment Terms	Proportion
Raw materials, etc	COD, CBD, etc	100%

Foreign Purchase

Product	Payment Terms	Proportion
Raw materials, etc	CBD, etc	100%

Sales

Domestic Markets

Product	Sales Terms	Proportion
Waxes, etc	COD, CBD, etc	100%

Export

Product	Sales Terms	Proportion
Waxes, etc	CBD, etc	100%

Notes: Subject’s settlement for export is generally in USD

Balance Sheet

Unit: NTD/000

	2011-9-30	2010-9-30
Cash And Cash Equivalents	70,713	161,165
Net Notes Receivable	7,312	17,639
Net Accounts Receivable	110,352	89,799
Accounts receivable-net-relate parties	.	10,849
Accounts Receivable-Related Parties	.	10,849
Other Receivables	8,059	20,102
Current Assets	652,514	593,351
Inventories	447,618	244,644
Inventories-manufacturing	447,618	244,644
Advance Payment	2,577	40,344
Other Current Assets	3,930	5,200
Changes in the fair value of the financial assets on profit and loss-flow	1,953	3,609
Investment	204,622	63,733
Long-Term Investments At Equity	204,622	63,733
Financial Assets In Held-To- Maturity-Non Flow	25,000	50,000
Financial Assets At Cost – Non Flows	2,200	14,631
Fund and Investment	231,822	128,364
Land	110,227	110,227
Building and Structure	63,031	63,031
Machine Equipment	842,908	800,158
Transporting Equipment	1,571	1,571
Total Fixed Assets Cost	1,029,373	980,206
Surplus Arising On Revaluation	88,690	88,690
Accumulated Depreciation	-787,217	-765,792
Net Value Of Fixed Assets	339,203	325,564
Total cost and Surplus Arising On Revaluation	1,118,063	1,068,896
Unfinished project and equipment funds in advance	8,357	22,460
Construction in progress	2,031	3,654
Prepayments For Business Facilities	6,326	18,806
Other devices	11,636	5,219
Guaranteed Deposits Paid	7,280	7,276
Deferred Charges	8,850	10,242
Total Other Assets	16,130	17,518
Total Assets	1,239,669	1,064,797
Short-Term Borrowing	340,000	140,000
Account Payable	6,558	7,662
Income Tax Payable	2,709	26,184
Accrued Charge	16,554	32,255
Changes in the fair value of the financial liability on profit and loss-flow	316	130
Current Liabilities	377,076	230,544
Other Long Term Payables	.	6,604
Advance Receipt	3,376	7,000
Other Current Liabilities	7,563	10,709
Reserve For Land Revaluation Increment Tax	10,420	10,420
Total Reserves	10,420	10,420
Retirementallowancereserve/ Accrued Pension Liabilities	16,333	16,005
Total Other Liabilities	16,333	16,005
Total Liabilities and Equity	403,829	256,969
Common Stock	646,905	505,395
Stock Capital	646,905	505,395
Capital Surplus- Permanent Investment	3,922	.
Total Capital Surplus	3,922	.
Legal Surplus	92,985	72,536
Unappropriated retained earnings	12,929	151,371
Total Retained earnings	105,914	223,907
Cumulative Translation Adjustment	1,549	256
Financial products unrealized profit and loss	-720	.
Unrealized revaluation value	78,270	78,270
Total Stockholders' Equity and Other adjustment	79,099	78,526
Equivalent Shares of Outstandings of Advance Receipts for Common Stock (Unit: Share)	-	-
Number of Treasury Stock Acquired by  Parent Company and Subsidiaries (unit: Share)	-	-
Total Stockholders’ Equity	835,840 (USD 27,917,056)	807,828 (USD 26,981,455)

(As of 2012.01, 1 NTD = 0.0334 USD)

Profit and Loss Account

Unit: NTD/000

	2011-1-1 ~2011-9-30	2010-1-1 ~2010-9-30
Total Operation Revenue	1,286,675 (USD 42,974,945)	1,464,356 (USD 48,909,490)
Net Sales Revenue	1,286,675	1,464,356
Total Sales Revenue	1,286,675	1,464,357
Sales Discounts And Allowances	.	1
Total Cost Of Sales	1,132,397	1,141,367
Operating Margin	154,278	322,989
Total Operating Expenses	77,944	88,636
Distribution Cost	38,370	41,286
General And administrative Expenses	34,106	41,035
Research And Development Expenses	5,468	6,315
Net Operating Profit (Loss)	76,334	234,353
Non-operating revenue and profit	3,917	1,591
Interest Income	639	1,378
Foreign Exchange Gain	2,765	.
Miscellaneous Income	513	213
Non-operating expenses and losses	59,022	21,557
Interest Cost	3,124	1,504
Investment Losses	52,515	17,310
Investment Loss Recognized Under Equity Method	52,515	17,310
Foreign Exchange Loss	.	2,309
Interest Expenses	3,383	434
Net Income from continuing operations before income tax	21,229	214,387
Income from continuing operations	5,817	40,116
Unit Net Income from continuing operations before income tax	15,412	174,271
Net income (loss)	15,412 (USD 514,761)	174,271 (USD 5,820,651)
Basic EPS (Unit: NTD)	0.24	2.69
Diluted EPS (Unit: NTD)	0.24	2.69

(As of 2012.01, 1 NTD = 0.0334 USD)

Bankers

Subject declined to disclose its bank details; from other source we can not obtain the relevant information, either.

Public Record

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.

Interview Details

Department

Sales department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.29
UK Pound	1	Rs.77.60
Euro	1	Rs.64.67

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.